The Influence of National Culture on the Level and Outcome of IS Development Decisions

Abstract

Would the outcome of a Global multinational organization's decision be the same if the same decision were to be made in different countries throughout the world? Within the same organization, we propose that national cultural differences can influence decision making in different countries and cultural clusters. While much work has been done on organizational cultural influences, this study examines the influence that national culture has on organizational decision making in respect to the evolution/redevelopment decision that organizations may face at a point in time. Building on findings from the GLOBE research program, we show by empirical testing of a theoretical model that national cultural dimensions are significantly associated with a) the outcome of the decision to enhance or re-develop a system, and b) the organizational level at which such decisions are made. This research is significant as a means to improve management decision making, particularly with regard to the enhancement versus redevelopment decision. The research suggests that a relatively uniform sub-culture exists across the global IS project level but that national cultural dimensions play a more important role in determining the organizational management level at which decisions are made. Our analysis also suggests that technical factors (Upper case tools and platform) carry more influence in the outcome of the decision at the project level (i.e., development or enhancement). However, human factors (national cultural dimensions) were seen to be more important at the management level (i.e., where the decision was made).